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Council approves East First Avenue redevelopment agreement for 24 affordable units
Summary
Council approved a redevelopment agreement with the Mitchell Area Development Corporation to convert a former trailer park into approximately 24 affordable housing units, with steps including replats, rezones and a proposed split of TIF increment between city and developer.
The Mitchell City Council approved an agreement to redevelop the East First Avenue site the city purchased last year, authorizing the Mitchell Area Development Corporation (MADC) to proceed with assembling a 24-unit affordable housing project.
City staff explained the recommendation and said the agreement is structured so MADC will work with a redeveloper to deliver a mix of two- and three-bedroom units, and that several follow-up actions (replats, rezones and a tax increment financing request) will return to council for approval. The proposal envisions a split of tax-increment revenues between the developer and the city rather than the near-total developer allocation typical of past TIFs.
During council questions, members asked when and how the city would be repaid if it contributed funds. Staff said a TIF timeline has not yet been submitted and that typical TIF repayment windows are 20 years; staff also noted that additional property-tax revenue from constructed units would help the city's recovery. Council discussed demolition and staff labor costs, and staff estimated that the city's own demolition work reduced immediate outlays.
A motion to approve the redevelopment agreement was moved, seconded and approved by voice vote. Council members requested that future steps (the TIF application, replats and rezone requests) be returned with supporting financial projections and that staff clarify the proposed increment split when the TIF application is filed.
The redevelopment agreement marks a significant step toward delivering affordable housing on a site the city previously acquired and will require subsequent regulatory approvals before vertical construction begins.
